Sources and Impacts of Uncertainty on MRP Systems

Sources and Impacts of Uncertainty on MRP Systems


Materials Requirements Planning (MRP) is used as a inventory control system in which a material plan for production may be generated, along with process cycle times and production lead times. MRP has the ability to plan work orders and purchase requisition, and to reschedule tasks as changes come apparent.

MRP reduces operator time by reducing the tedious jobs such as checking stock levels and re-ordering materials and components by calculating these on a computer. Limitations of the current working environment may also be taken into consideration by the MRP system, so constraints to the business are not ignored.

A MRP system can be so versatile as to forecast material dates by which they would be required; take into account supplier delivery capabilities, optimum ordering quantities, carrying costs and shop floor scheduling; and control materials orders, monitor work-in-progress.

A basic MRP system incorp...